From 1941 to 1979, Iran was ruled by King Mohammad Reza Pahlavi, the Shah. Shah Mohammed Reza Pahlevi, his wife, Queen Fawzia, and the little Princess Shahnaz on the grounds of their palace near Tehran, Iran, in 1942. AP Due to Iran's large supply of oil, proximity to India, and shared border with the Soviet Union, Britain and the US fully backed the Iranian government. Sepah Square, the main square in Tehran, Iran, April 20, 1946.